Republic of Mining

B.C. Government Support for New Prosperity Mine Sends Confusing Message To First Nations – by Adam Olsen (Huffington Post – March 7, 2014)

March 7, 2014

http://www.huffingtonpost.ca/

Adam Olsen is the interim leader of the BC Green Party.

The Canadian government has rejected the New Prosperity Gold & Copper Mine southwest of Williams Lake, B.C. for the second time. Federal Conservative Environment Minister Leona Aglukkaq announced that she, like her predecessor Jim Prentice, had turned down the mine proposal concluding the “project is likely to cause significant adverse environmental effects that cannot be mitigated.”

No doubt the announcement caused a collective sigh of relief from the Tsilhqot’in and Secwepemc Nations who have spent more than two decades opposing the project. The Federal Review Panel’s final report to the government last October found New Prosperity would “adversely affect” the local First Nations way of life and that the impact would be “significant” and “could not be mitigated.”

Despite the fact that the Tsilhqot’in and Secwepemc are opposed to the New Prosperity mine, the B.C. Liberal government continues to support the project. This is both profoundly troubling and inconsistent with their commitments to First Nations.

In the last few weeks alone there has been no shortage of B.C. Liberal rhetoric about the importance of building relationships and partnerships with First Nations that are founded on respect:

Line 9 pipeline approval comes with conditions for Enbridge, harsh words to activists – by Claudia Cattaneo (National Post – March 6, 2014)

March 7, 2014

The National Post is Canada’s second largest national paper.

The National Energy Board handed a conditional approval to a proposal to reverse the flow and expand Enbridge’s controversial Line 9 so it can move western oil to refineries in Ontario and Quebec, and doled out harsh words to activists who disrupted its hearings.

In a 141-page ruling released Thursday, the board said the decision “enables Enbridge to react to market forces and provide benefits to Canadians, while at the same time implementing the project in a safe and environmentally sensitive manner.”

The federal regulator said the 30 conditions imposed on Enbridge would enhance the pipeline’s integrity and environmental protection, improve emergency response and require continued consultation. The regulator turned down a request by Enbridge to exempt it from a final check to ensure all conditions are met.

The approval is final. It involves a 639-kilometre stretch between North Westover, Ont., and Montreal, Que., as well as an increase of the pipeline’s capacity to 300,000 from 240,000 barrels per day. Enbridge also won permission to move heavy oil. The NEB had already approved the reversal of the western portion of Line 9, a 194-kilometre segment linking Sarnia to North Westover.

Jim O’Neill interview: Making a MINT in the new BRICs (Grant Thornton – March 6, 2014)

March 7, 2014

http://www.grant-thornton.co.uk/

Ed Nusbaum, Global CEO at Grant Thornton International, talks to leading economist Jim O’Neill, about where the world’s next economic powerhouses will be.

When economist Jim O’Neill coined the term ‘BRIC’ in 2001 to group together the fast-growing economies of Brazil, Russia, India and China he couldn’t have known that the insight would prove so powerful. In our exclusive interview, he reviews how the BRICs are performing, presents a new acronym and reveals who he thinks will win the economic race to export growth: Germany or the UK.

From a business investment point of view, which markets excite you most over the next decade?

The markets which excite me from an investment perspective depend – and vary –according to the price and actual growth compared to expectations. So today, for example, even though Chinese growth is slowing, its markets have fallen so much that the implied price of the equity market compared to earnings is quite low. At current prices at the time of writing, most BRIC markets are quite cheap, both relative to the rest of the emerging world and the developed world. So for me, China, Brazil and Russia look interesting.

Ring of Fire: Matawa chiefs want to be in centre of talks – by Carol Mulligan (Sudbury Star – March 6, 2014)

March 7, 2014

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Many Ontarians are frustrated with the slow pace of development in the Ring of Fire, but the Matawa Chiefs Council represented by former Ontario premier Bob Rae feels that way for a different reason.

The chiefs, who represent nine first nations located near the chromite deposits, want greater recognition of the need for human and social development on reserves in remote communities and the need to get moving on that, said Rae.

They’re frustrated the Ontario and federal governments are suddenly interested in their region “not because of the appalling social conditions on reserves,” said Rae, “but because of the possibilities of major mining development.”

His clients are telling him, “if you’re going to discuss mining development, you’re going to discuss our development,” Rae said Thursday afternoon, before he was to deliver a talk that evening at Laurentian University for the Goring Family Lecture Series.

Rae was to speak on the topic Mining and First Nations: Sustainability is the Only Option. Earlier in the day, Rae met with aboriginal and other community leaders to discuss related issues.

PDAC delegates optimistic despite mining downturn (CBC News Sudbury – March 06, 2014)

March 7, 2014

http://www.cbc.ca/sudbury/

Junior mining companies are feeling the brunt of a tough stretch on the metal and mineral markets — and of stalled development in the Ring of Fire.

That’s according to Garry Clark, the executive director of the Ontario Prospectors Association. Clark just attended the annual Prospectors and Developers Association Convention this week in Toronto.

He said investors are shying away from putting money into junior companies. “They’re struggling greatly. I think part of that is trying to raise money,” he said.

“It’s hard to find the money we need to do the exploration or even just to keep the junior companies alive. You see that in the fact that there’s lots of mergers and acquisitions and … partnering of junior companies.”

Clark said this is the worst down-turn in the industry he’s ever seen, however this year’s PDAC event was more uplifting than the one before. The industry lull means surviving junior companies will face less competition for investment dollars.

Crossroad Policy: The Canadian mining industry in 2014 – video – by James Munson (iPolitics – March 1, 2014)

March 7, 2014

http://www.ipolitics.ca/

The mining world finds itself at the intersection of multiple often contentious strands of federal government policy. It’s where the economic development, aboriginal communities, environmental protection and foreign assistance cross paths in sometimes conflicting ways.

This crossroads landscape comes into especially sharp focus at the annual Mecca of Canada’s extractive sector — the Prospectors and Developers Association of Canada’s conference in Toronto, where stories from the front lines of one of the most fascinating industries can be heard.

To kick off our week-long coverage PDAC 2014, iPolitics.ca set out to explore some of the key issues facing miners today by bringing them to three experts in the sector.

From left to right as you see them in the thumbnails below, Guy Freedman is the founding partner and president of the First Peoples Group and a former employee with a mining company himself. He provides advice to companies and governments alike on how to work with aboriginal communities.

First Nations must be equal partners in Ring of Fire, Rae – by Jonathan Migneault (Sudbury Northern Life – March 06, 2014)

March 6, 2014

http://www.northernlife.ca/

Ontario has lagged behind other provinces – namely Quebec and British Columbia – when it comes to its dealings with First Nations, said Bob Rae. The former Premier of Ontario, and interim leader for the federal Liberal leadership, became the chief negotiator for the Matawa First Nations – representing nine Native governments – last year.

In his first role outside of the political arena on Parliament Hill, Rae has worked to develop a framework that would form the basis for a partnership between the Ontario government, the Matawa First Nations and the companies seeking to profit from the Ring of Fire.

Prior to a speech at Laurentian University – scheduled for Thursday night – Rae told Northern Life that Quebec and BC have have been much more open than Ontario to sharing management decisions with First Nations and granting authority to regional governments.

“If you look at the kinds of agreements that have been signed in other provinces you see very clearly that you’re looking at a way of not simply consulting with First Nations, but of giving First Nations the ability to take real responsibility for the building and management of infrastructure, the making of economic and social decisions, and participating fully in decisions affecting the natural environment,” Rae said.

Africa’s push to add value to minerals now a riskier gamble – by Silvia Antonioli (Reuters India – March 6, 2014)

March 6, 2014

http://in.reuters.com/

LONDON, March 6 (Reuters) – African government efforts to force mining companies to process minerals before export may backfire as they come up against weakening commodity prices and investor demands that firms reduce risky investments.

In the last year alone, Zimbabwe, Zambia, Democratic Republic of Congo (DRC), Namibia, South Africa and others have hinted at, announced or put in place measures aimed at adding value to minerals exports, which would boost tax revenue, encourage formation of new businesses and add jobs.

But with falling metal prices and a drastic reduction in the capital available for the mining industry, wary companies are increasingly shying away from investment in countries where the rules of the game can change quickly.

“Investment sentiment in the last year has moved against the mining sector, but the governments tend to have a lagging view of how this is going to affect investment in their countries,” said Mike Elliott, global mining and metals leader at Ernst & Young.

How the NDP is trying to be pro-mining – by Kim Mackrael (Globe and Mail – March 5, 2014)

March 6, 2014

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The federal NDP is positioning itself as a pro-mining party that would revive stalled negotiations on Ontario’s Ring of Fire development while keeping federal regulations “lean.”

Speaking with The Globe and Mail during a global mining conference in Toronto this week, NDP Leader Thomas Mulcair said his party would seek buy-in from First Nations communities to speed up new developments. The annual convention of the Prospectors and Developers Association of Canada has become a global attraction, drawing nearly 30,000 delegates and dozens of MPs.

Mr. Mulcair pointed to the fact that the NDP has a critic for mining issues – MP Claude Gravelle, from the Nickel Belt riding in Northern Ontario – as evidence his party takes the topic seriously. “We’re very interested and we want you to succeed,” Mr. Mulcair said he told industry representatives.

The NDP stepped up its presence at this year’s PDAC convention, with 16 MPs attending the event – four times the number present last year and a sign the NDP wants to show the mining industry it takes its concerns seriously.

Women in Mining chapter starts in Sudbury – by Jonathan Migneault (Northern Ontario Mining – March 6, 2014)

March 6, 2014

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

The inaugural meeting of Women in Mining Northern Ontario, Jan. 30, in Sudbury marked a “pivotal moment” for the sector, said the event’s keynote speaker.

Samantha Espley, general manager of mines and mills technical services with Vale’s Ontario operations, said it is important to inform young girls and women about the career opportunities. Women represent only 16 per cent of Canada’s mining workforce – the lowest proportion for any sector in the country.

Most women who work in the mining industry do not have technical roles, but occupy traditional office jobs in administration and human resources departments. Women in Mining Northern Ontario hopes to eventually increase female representation in the industry to 50 per cent.

Espley, who earned her engineering degree from the University of Toronto in 1988, said the industry has progressed a lot for women since she first started her career.

Quebec’s ‘Ring of Fire’ key to Liberal jobs pledge – by Allan Woods (Toronto Star – March 6, 2014)

March 6, 2014

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Quebec Liberal Leader Philippe Couillard says Parti Québécois talk of sovereignty referendum will scare away business investment.

MONTREAL—Quebec Liberal Leader Philippe Couillard is promising to create a quarter-million new jobs, in large part by resurrecting an old party pledge to unlock the province’s tough-to-reach northern regions and tap the mining riches below the ground.

First floated in 2008, it took three years before Couillard’s Liberal predecessor laid out the plan on the eve of a 2012 election in which his party was defeated. In scope and ambition, the so-called Plan Nord resembles Ontario’s strategy to unlock the mineral-rich Ring of Fire north of Thunder Bay. In essence, the government would build the infrastructure and the private sector would build the mines and pay royalties.

When it was first detailed, ex-Liberal premier Jean Charest said the 25-year investment in Quebec’s North would create 20,000 jobs annually, which would go a long way to meeting Couillard’s election pledge of 50,000 new jobs a year over the next five years.

Skurla study’s ‘mining boom’ would be due almost entirely to taconite – by Marshall Helmberger (MinnPost.com – March 6, 2014)

March 6, 2014

http://www.minnpost.com/

The following column was originally published in the Timberjay newspapers of Ely, Tower-Soudan and Cook-Orr. For more than three years, advocates for copper-nickel mining have pointed to the study produced by Jim Skurla, of the Labovitz School of Business at the University of Minnesota-Duluth, as a key justification for moving forward with this new type of mining.

The study, first released in 2009 and updated in 2012, touted huge impacts from planned new mining projects, in terms of jobs and new tax revenue to the state and local areas.

We’ve all heard the numbers from Skurla’s report cited by mining proponents — as many as 5,000 new jobs in what they term the “strategic mining sector” if all the proposed projects move forward as planned. To supporters, such numbers portend an economic renaissance for our region.

While some economists have taken issue with Skurla’s report, I don’t have any reason to believe that his conclusions are in error, at least within the context of economic modeling in general, which is typically about as accurate as your average weather forecast. The bigger concern, in my mind, is that his conclusions are widely misunderstood.

Canada, the global ‘mining capital’, reaffirms support for industry – by Henry Lazenby (MiningWeekly.com – March 5, 2014)

March 6, 2014

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – The Canadian Ministry of Natural Resources has used the world’s largest gathering of miners, the Prospectors and Developers Association of Canada’s (PDAC’s) International Convention, Trade Show and Investors Exchange to once more throw its full weight behind the mining industry.

Speaking at the convention’s opening ceremony earlier this week, Natural Resources Minister Joe Oliver called Canada the mining capital of the world, and highlighted the federal government’s actions taken to strengthen and grow the mining industry.

He said that government’s Responsible Resource Development plan ensured world-class environmental protection while providing certainty for investors; a $100-million commitment over the next seven years for the geomapping for energy and minerals initiative would help exploration companies find deposits and create jobs; the extension of the mineral exploration tax credit in Economic Action Plan 2014 had helped junior exploration companies raise $5-billion in capital; and that government was pursuing an aggressive international free trade agenda, by concluding a comprehensive free trade deal with the European Union – the largest economy in the world.

Oliver also discussed the government’s efforts to implement transparency and accountability through mandatory reporting standards for Canadian extractive companies.

Promoter Banks on Lucky Table 25 as 25,000 Trawl for Mine Deals – by Christopher Donville (Bloomberg News – March 06, 2014)

March 6, 2014

http://www.businessweek.com/

David Grondin had taken up position at his lucky table 25 in the InterContinental’s Azure restaurant, pitching his latest dream at the world’s biggest gathering of miners.

“We may be small, but we think big,” Grondin, 36, said during a break in the proceedings in Toronto. “All the world comes to PDAC and now they are coming to meet with me.”

Thousands of other entrepreneurs like Grondin, chief executive officer of TomaGold Corp. (LOT), were touting their projects with similar enthusiasm at the Prospectors & Developers Association of Canada convention.

This is how promoters of mine-exploration companies try to get projects off the ground: one plausible, or sometimes implausible, sales job at a time.

That task has only gotten tougher since gold fell last year by the most in more than three decades, reducing the chances that so-called juniors would get funding from, or be bought by, larger miners.

Primero takes over Black For mine, mill [Timmins] – by Ron Grech (Timmins Daily Press – March 6, 2014)

March 6, 2014

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Black Fox mine employees began meeting with their new owners this week.

On Wednesday, Primero Mining Corp. completed a deal to acquire all assets of Brigus Gold including the Black Fox mine and mill located in Black River-Matheson, as well as the adjacent Grey Fox mine property. The agreement was initially announced in December.

“The company was created about three-and-a-half years ago,” said Joseph Conway, Primero president and chief executive, who was at the Days Inn in Timmins to meet with mine staff. “It was through a buyout of an asset from Goldcorp in Mexico. It was a producing mine and it was running at 90,000 ounces a year but it was under-capitalized and since then we’ve been reinvesting back into that operation and are now producing about 160,000 ounces a year.”

While Primero plans to continue that trend of investing in its assets, Conway admitted they will be a little less bullish about bringing Grey Fox into production. The previous owner, Brigus Gold, had talked last year of pulling Grey Fox into production by the first half of 2015.